The cash account of Abstract, Inc., disclosed a balance of $16,348.82 on October 31. The bank statement as of October 31 showed a balance of $19,711.75. Upon comparing the statement with the cash records, the following facts were developed.
(a) Abstract€™s account was charged on October 26 for a customer€™s uncollectible check amounting to $1,927.
(b) A 2-month, 8%, $1,350 customer€™s note dated August 25, discounted on October 12, was dishonored October 26 and the bank charged Abstract $1,374.91, which included a protest fee of $6.91.
(c) A customer€™s check for $580 was entered as $530 by both the depositor and the bank but was later corrected by the bank.
(d) Check No. 661 for $1,838.00 was entered in the cash disbursements journal at $1,383.00 and Check No. 652 for $47.50 was entered as $475.00. The company uses the voucher system.
(e) Bank service charges of $54.81 for October were not yet recorded on the books.
(f) A bank memo stated that C. Castro€™s note for $1,800 and interest of $74.20 had been collected on October 29, and the bank charged $15.00. (No entry was made on the books when the note was sent to the bank for collection.)
(g) Receipts of October 29 for $5,450 were deposited November 1. The following checks were outstanding on October 31:

Instructions:
1. Prepare a bank reconciliation as of October 31.
2. Give the journal entries required as a result of the precedinginformation.

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